Question
Suppose there is a region with a single factory city that developed as a result of scale economies in production.A new matter transmitter is introduced
Suppose there is a region with a single factory city that developed as a result of scale economies in production.A new matter transmitter is introduced to this city.The matter transmitter can instantly transport goods (but not people) from the factory to any consumer 12 miles away with a zero marginal cost of transport.The hourly cost of the transmitter is constant, no matter how many or few times it is used.What happens to the market area of the factory?What does the market area graph look like?(Up to now, these graphs have looked like Vs on a stick.Do they still look like this?)Explain.
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